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tv   Cavuto  FOX Business  May 3, 2013 8:00pm-9:01pm EDT

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rothman sitting in for lou dobbs. coming up, author andrew mccarthy and house oversight committee member trey gowdy. you can see me alongside was a princess on the fox business network each day on markets now. niel: stocks are up because jobs are. the day after we were told jobs were down. the unemployment rate is looking good nevermind what all those jobs. the comedian famous for picking up the oddities in life. this and that, things are getting better,.
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>> bars and restaurants, retail businesses and more than enough to compensate. the 11,000 positions emanated from government. how-to reports can be so diametrically opposed stocks focusing on the surprising 7.5% unemployment rate. what will the folks who do the hiring, not defined, what will
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they do to bring the jobs back? that is what their own actions say that they are not doing, that makes me think everyone is believing. the recovery is back on course. those who do not see this recovery, they want to, they have been waiting and hoping. they have been praying. but it still is not happening. with me now is david mcarthur and david, do to you first. you are seeing all of this looking and hollering and wondering about the party. >> nobody out, you know, i just don't think there's any reality between wall street and main street, i guess, as the saying goes, but i don't hear about is the construction jobs that are
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lost in the restaurant jobs that are back up again, the number that the photos means that people that are going back to work or going back for what? have we lost here in st. louis -- have we lost this clinic is now a big grass field. those were $30 an hour jobs. the same people are going back to work at $14 as an intro i.t. worker. because that will keep my business from coming back. neil: you're saying the hoopla doesn't match what is really happening? >> yes, i can hear you. it hasn't matched at all.
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i think the sentiment about wall street not dealing with the realities of what is happening in the private sector is just a huge disconnect. where have we seen that before? >> you are right about that. focusing on how big companies are doing. they seem to be doing a lot better than the small guys. >> well, you know, i think that in nevada we have the dubious distinction to still have 9.7 unemployment in the nation.
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and obamacare, the main issue that came up was having over 50 employees, being quagmire into huge costs on overruns for next year. everyone is still being cautiously optimistic. i see that unemployment is rising a little bit. here in the state. but i don't see it as this big boom. i do see it as a disconnect between private business and wall street. i think that wall street is pretty much controlled by the big hedge funds and mutual funds and because of that, all my buddies don't have a lot of extra cash right now to throw into the stock market. >> i apologize for that, what was your take on the economy? >> it is pretty evident to me in the manufacturing sector. we have automotive, medical, some of the sectors are doing
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okay. a lot of the other trades, people are still hurting. if they are like me, i have a moratorium on hiring, i'm looking at better ways of doing things, and i just can't see the economy in my business coming back to the extent that wall street projections reflect and what it is is reflected in having an private sector. d'amore extra cash this year than he did last year? cost of fuel is out.
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you have an increase your salary levels to stay with basic inflation. how can this economy recover when the consumer has not been able to stay up with their cash flow at the rate of what inflation has been. neil: remember when wisconsin union went nuts? even trying to recall the governor? well, get ready. creating shock waves everywhere today
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neil: forget the markets. this does then is now probably the event of the week. state workers in illinois have now been given an ultimatum. pay up or shut up. sabrina, what do you say? >> this is just the beginning.
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the state has saved hundreds of millions of dollars, very similar reforms, actually asking that public sector union workers pay more into their pensions, more into their health care. this is not unheard of. neil: there is a far more onerous proposal. that could be one of the union workers now. do you think this is a sign of the times and it will be the pattern? >> it has to be come as we know, there are five cities in the state of california. particularly when you take the city of san bernardino.
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this is going to occur, but it's interesting to note that in this ongoing situation, as the bond market improves, they went from $5 -- excuse me, i .14% to 5.9%. $97 billion upside down. if you don't want to deal facts and reality, your greatness. >> okay, he is referring to price or going up and yields going down. this might be getting a handle on the finance system. we've got a? >> well, chicago, which is my
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home, my home state, defense then a long time. they promised benefits they can't pay for. you're talking about mayors and cities not paying in the right amount of money to the fund. spew and you think it is catching up with reality? >> it is a serious problem. there are other problems like this. >> they are going to extend out the age of retirement. there are questions about whether there could be enough. neil: that is a very good point.
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it eventually is up to 5%, then it makes the workers they even. then it's factored in. revisiting this, when he make of that? >> i am sure that some critics will be concerned about workers abilities to pay that much. >> i think we need to be talking about what is good for workers to make sure that they are getting a retirement. >> this is the inevitable direction, is in a? >> not only that, to use the word fair, certain people paying
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their fair share. who determines what is fair? you cannot be dealing with relative terms like that, you have to deal with reality. the thing is upside down. if the state is going to go bankrupt, if you don't look at it and pasted straight on, whether you're republican or democrat coming have to deal with reality. a big problem is bankruptcy. >> that's right. >> you have lawmakers waiting in and mayors benefiting from this. it is not just the rank and file people here. it's a corrupt system that needs to be reformed seriously. >> unions would be smart to go along with this and get a head start. the fact is that the public doesn't have a very fun view of things right now. public support is dropping precipitously. people don't think that all workers are doing the same deal here, i think that unions would
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be smart to start saying, we hope that they start paying her sure her. neil: we will see you a little bit later in the show. a very good week for stocks. harry reid and small businesses start to run their engines. we will have that next. and everyone but her... no. no! no. ...likes 50% more cash. but i don't give up easy... do you want 50% more cash? yes! yes?! ♪ [ male announcer ] the capital one cash rewards card gives you 1% cash back on every purchase, plus a 50% annual bonus on the cash you earn. it's the card for people who like more cash. ♪ what's in your wallet? why?
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neil: even harry reid says this needs more money. can you blame small businesses that want no part of that. they are suing the government. that is effectively part of
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this. well providing small businesses to provide health care. good to have you. >> obamacare is quite clear that the states when were in these exchanges for small businesses and individuals, then employers will be required to offer conforming insurance. but if the federal government ran these exchanges, they didn't have to. it's quite clear on the face of the statue. thirty-three states have elected not to run it, which means the federal government is fining employers for not offering the insurance of the obamacare demands.
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neil: senator reid and senator baucus is it any more cash, what prompted him? this seems to be falling apart. double elites not one of these down. neil: offering insurance, and many have chosen that as a cheaper alternative to providing insurance under the new
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guidelines. let's say you lose, you think that pattern continues? >> i think he will be a very difficult decision for any kind of business, we have a lot of young and healthy people, you have would have to buy overpriced insurance for all of them rather than reducing your workforce 250 were reduced paying the penalty. as health care costs, health insurance costs skyrocket, it will become increasingly more difficult for small employers to say yes, we are going to continue to pay $20,000 a year for a family of four for health insurance. i think they might say we would rather pay the penalty, give cash to employees and let them go out and buy the own insurance. neil: regulations and everything else that is impacted by it. the other day we mentioned all the forms that you have to spell out the just get to be a regulatory nightmare.
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we have to make all kinds of very tough decisions about whether to keep and what could you do about these wellness programs and contraceptives. i think it is a regulatory and bureaucratic nightmare for those who are not offering the plan right now. neil: you are offering a cadillac plan. both you and the employer and usb employee are going to be paying a lot more for the privilege. >> absolutely. health care costs going up from 25 to 30% in the first season. neil: but it wasn't that way all the time, was there. thank you very much.
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we want to follow this very closely. >> who says all new york politicians hit wal-mart? the guy who wants to be mayor. it has always been a pariah in this fine city is how like us these chimpanzees are. [ laughing ] [ woman ] can you hear me? and you hear your voice? oh, it's exciting! [ man ] touchdown confirmed. we're safe on mars. [ cheers and applause ] ♪ hi. [ baby fussing ] ♪
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>> this just in, wal-mart is not out in new york.
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because republican mayoral candidate joseph lota not only likes wal-mart, but he loves it. that is an anomaly. he also supports wal-mart coming to new york. so you know the history on us. >> we have elected officials who want to be servants for the unions. elected officials in new york should be focused on getting jobs for the people who live in new york. allowing them to bike clothing and food at list prices. >> they would be allowed to set up on jupiter. but that issue always gets in the way.
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when they hate the idea that this comes from somewhere in asia, each one of them has an apple iphone in their pocket, made by non-labor union in china. >> things are expensive, but as it turned from from a $50 for a gallon of milk. [laughter] >> not that much. it would welcome it least a break. >> thousands of new yorkers from queens go to nassau county to buy the milk at wal-mart. they save anywhere from six to 10% on costs. that is six to 10% of your payroll back in your pocket. on the other side, yet people each one of the wal-mart stores provides two to 300 jobs come in the last time they can allow one in new york was in a community
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that had 20% unemployment. neil: lets the viewer become mayor. they throw out all of these businesses. >> eight half-million people live in new york. they don't have a main street. we have 8.5 million people. >> the greater good would be greater flexibility and price. is that correct? >> the greater good and pricing, for consumers, more importantly jobs. elected officials in new york should be concerned about making
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sure that the constitueconstitue nts have a job. it's the most important thing that i will focus on. making sure that everyone has a job on opportunity for a job. >> so you are up against a lot. in a very liberal town. how do you reconcile that? >> we have had republican or independent mayors for the last 20 years. >> i am exactly that. i am socially progressive, i am very fiscally conservative. deputy mayor in the second term. there is no question on my fiscal conservatism.
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>> the name recognition is important. i fundraiser every day. part of the finance system here in new york, it limits how much i can spend. my name will be out there, people will know me when i go to the polls. >> you think that there are just -- mayor bloomberg, the top on the other side. >> the focus on republicans comes about. it really is going to be hootie want to be the next leader of new york. unlike folks in washington and new york city, the mayor's job keady said. keep your taxes low. it's to pick up the snow and it is really important who is the right person to manage a city of new york.
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there is no republican or democratic way to pick up the garbage. that will be me, the best person for the job. neil: >> the only person who manages complex organizations, they have a vast amount of government experience as well, new york city is a very complex organization, it is a 70 billion-dollar budget, larger than most corporations in
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america. >> thank you much. it is good to see you, fair and balanced. meanwhile, people have stopped drinking beer. i'm telling you. that is a crisis. we went out and asked people a simple question: how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're living longer, one thing that hasn't changed: the official retirement age. ♪ the question is how do you make sure you have the money you need to enjoy all of these years. ♪
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while dramatically reducing waiting time. [ telephone ringing ] now a waiting room is just a room. [ static warbles ] neil: cold weather, cold beer. a blizzard blitz. it is on. look at who is here with us. jonathan hoenig.
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it evened out. cold weather is having an effect in a convenient excuse. >> this has been happening for a long time. really rich guys who switched to wine. the bottom line is that it is somewhat of an excuse. >> interestingly, this is just like an appetizer for me. [laughter] people are not drinking, they are just switching to premium brews, craft brews, i actually think it is a bullish time for the economy. the consumer is well and alive. you know, i don't think it is a
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negative thing. >> samuel adams has it all, that kind of takes it to his point. people are buying things, jim beam, people are spending money, there is no doubt about it. that is light beer makers have yet to figure it out. >> beer is a weather related commodity. in warmer weather, people want to drink more beer. we have had a cold spring, it is one reason we see no sales down in. neil: okay, cold weather, hot burritos. all for a dollar. the dollar menu, tacos and burritos for just a dollar. >> i think it's wonderful. people like to trash talk the fast food restaurants, but they are giving you pluck a moly, nutrition, sour cream, calories for a dollar.
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we could get that panhandling on sixth avenue. my hats off to the fast food subsidy without a subsidy or a tax incentive. making food cheap and accessible for all and i think that's great >> i'm a little confused, where are the tacos? [laughter] >> it is not the way to start the weekend. i mean, come on. >> the dollar menu brings the crowds in. >> 's the one they can make money on the dollar menu. >> i don't know, mcdonald's into another gear when they went to that. it is a hugely successful thing and it works. neil: they are saying that you are making it too tempting. >> that is ridiculous. you should be saluting companies like taco bell.
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where can you get a meal for a dollar and a half or $2? a difficult economy, that's a major value. [laughter] neil: you have an apparent conflict here. you're talking about high and drink makers and the low end of food spectrum. neil: you are doing great on your final appearances. don't say we didn't warn you. chinese currency right now, the currency of choice for world traders who have been defaulting. hardly a huge that now. i must point out in light of this.
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charles, what he can? >> absolutely. and then we have going for us is that credibility that we have built up over this time. that is why we can have 16 or $17 trillion in debt. the bottom line, make no mistake, china wants, china would love to have the currency's. >> erratic, though it has been. >> it is happening. it is not that this could happen. you are seeing this happen. this is an etf fund that tracks the value of the chinese yen. investors can actually in this if they want. at a time to which the dollar is generally seen this way. >> the dollar has been strong against most currencies. it is the chinese currency which has been tremendously strong.
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>> if everyone says, well, we have these huge market, the chinese don't, don't worry about it. >> we have a huge debt. we owe them a commend this amount of money. over a long history, we are moving away free markets. when china rocks, so do others.
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i think that it is american taxpayers, those who owe the money on the debt. our bond markets fell off dramatically. american taxpayers are finally going to pay the price in terms of higher cost on debt and higher costs all-around. >> again, i think we are seeing that term this weekend. >> every time we have a hiccup, the mortgage rates, things go back down again. it is a short life. >> well, it has been in the past. i think we are going to find this. >> isbister? mr.? >> the latter half of this year's. >> i don't know. i just know when it happens, it will take a while. >> okay. i wish would've happened a few years ago so we could rebound from it.
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>> you could probably get two for a dollar. >> you just need to learn how to save the six piece chicken mcnugget. >> another charles. hold onto your party hats.
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>> then we put them into modernizing infrastructure. i think that those are two were
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the ideas that they probably shouldn't be put together. a tax holiday doesn't fix the basic problem of the tax code. it could be a lot better. the tax holiday is a temporary patch. on the other hand, we definitely need a strong way -- a strong permanent way, like an infrastructure bank, to finance this for more and better infrastructure. neil: i have always wondered when you do get that money, whether is to trillion, 1 trillion,, that that leads to an economic boom. the last time that we saw something like this, it didn't. some companies are backing to buy more stocks or raising dividends, so that is what they get. but the bank you expect for the up generally doesn't materialize. what do you make of that and whether there should be stipulations for companies
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getting this money back, money they argue they have already paid taxes on? >> well, they have paid taxes. they have paid taxes often in jurisdiction. but the temporary nature of such a thing means it might not be as likely as what is alleged. it was thought to be calamitous, you know, once they had a month to hit.
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and it does what it had a big impact. would he make of that? >> well, i think that people without sequestration was going to head, right away, that was ridiculous. and it should have been the expectation. they play out over the fiscal year. but it's a bad policy. we don't want to cut discretionary spending right now >> a lot of people say it was like a backup and backbone for congress and the white house if you couldn't come up with cuts, better something than nothing. what do you make of that? >> i don't think that. i think we need the grand bargain and major cuts in entitlement this year. we need them in the 2020s and 2030s and we need to legislate them now. neil: they never do. they can't. >> never say never. i think we maybe closer to it
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than what you think. but flashing that right now i'm at the discretionary spending is worse than nothing. >> we interrupt this for some news that can make this go. because you can fly airline anytime. two words. double miles! this guy can act. wanna play dodge rock? oh, you guys! and with double miles you can actuay use, you never miss the fun. beard growing conte and go! ♪ win! what's in your wallet?
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neil: when investors say now, they neglected to point out the other thing the rules and regulations for the folks who are doing this hiring, nearly $70 billion of the regulations, and the family worried about these green market times. again, mark, what do you think.
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>> a financial meltdown process cost is $22 million. if you believe the heritage foundation numbers, 70 billion to correct the 22 billion problem. neil: assuming it is targeted and well spent. >> doing so led to this. >> that is correct. anyway, for example, the new bill on obamacare. 17,000 times in the bill itself,
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the rules and regulations are going to be written by the secretary of health and human services. that is 20,000 pages of regulations backed up, over 7 feet tall. no one knows what that's going to cost. it is an outrageous thing, the federal government is under control. nobody reads it, and bingo,. >> well, that's what i was thinking of. i am worried about that. >> absolutely. something that is really important is that we are seeing regulation without representation. all of this is taking place by lawmakers. congress passed bills.
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>> it is part of the american businesses and families. >> would you say that by your definition? what is the overkill? there is just pile and pile. >> well, it is hard to know. the cost or 19.5 billion. 70 billion, the competitive enterprise institute puts it at 10,000. the cost of regulations is much closer to $2 trillion. where do we draw the line, a lot of americans say that some regulatory costs are okay. i think this is going way beyond what most americans would deem
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reasonable and responsible for government. >> you ever worry about that? >> to a man and a woman, they say the same thing. i'm in violation of any of these new rules and regulations, ignorance is not an excuse or way out. i pay these fines. i have to pay the fines. they have actually budgeted in fines they are not going to get. they have no idea it exists. >> well, there are compliance issues and business always wants less regulation. >> it is just a pylon of regulations. >> well, what is a pylon? neil: 1100 new rules and
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regulations. >> 40 billion for it environmental related regulations. how much would you pay to clean up and reduce cancer rates? neil: think about what you are saying. the original's and regulations, we piled onto those. this would apply to this. what is the end and the benefit that you get? >> a a lot of this is because of business lobbyists trying to rewrite this. >> my point is -- >> i think that -- excuse me, i think you're onto something more fundamental. that is the people who are elected to not read the bills. max baucus said the other thing
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the other day. did you read the bill. he said no, i can't read every word. >> we don't like those. >> everything is no. neil: as far as no one regulation, that is pretty clear. neil: sabrina, where do you see this going? >> a lot of times, these regulations have fuel efficiency standards and people were praising the epa for this. car companies responded by making lighter weight cards. those regulations are having impacts on the economy.
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>> sometimes it's more regulations or better regulations. neil: what they did for fuel-efficient cars, they talk about the miles that they cover. be careful what you wish for >> hello everybody by m jerry lewis. the housing market is roaring back what a great wato end the trading week. also the new tax are the buyers getting the shaft? what is going on with celebrities? thumbing their nose at the law? >> our top story tonht

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